Anxious traders turn to long-term bonds
The word of the day in financial markets: anxious.
On Friday traders did something they rarely do: They sold what are considered to be the world's safest short-term investments. Traders typically buy short-term U.S. Treasurys on Friday because they want their money in a safe place in case something happens over the weekend to rattle markets.
But this week they instead bought longer-duration bonds as concerns grew that the federal government may not be able to pay all of its bills next month. Yields on bonds due in one month rose higher than those due in six months. The higher the yield, the higher the implied risk of the bond. Analysts say it's a clear sign a short-term default is a growing possibility.
The Dow Jones industrial average fell 96.87 points, or 0.79 percent, to close at 12,143.24. The Standard & Poor's 500 index lost 8.39 points, or 0.65 percent, to 1,292.28. The Nasdaq composite fell 9.87, or 0.36 percent, to 2,756.38. The Dow is still up 4.9 percent for the year, but it is down 667.3 points, or 5.2 percent, from its highest point of the year, which it reached on April 29. Two stocks fell for every one that rose on the New York Stock Exchange. -- AP
'His sacrifice made a difference': Gold Star mother honors son's memory Army Pfc. Raheen Tyson Heighter, 22, of Bay Shore, was the first serviceman from Long Island killed in the Iraq War.
'His sacrifice made a difference': Gold Star mother honors son's memory Army Pfc. Raheen Tyson Heighter, 22, of Bay Shore, was the first serviceman from Long Island killed in the Iraq War.
